Veeva Systems Inc (NYSE:VEEV) stock fell 8.54% (As on November 21, 11:52:38 AM UTC-4, Source: Google Finance) as Wall Street zeroes in on customer churn in its flagship CRM business and a flurry of mixed analyst reactions. However, VEEV reported third-quarter fiscal 2026 results that exceeded analyst expectations, with the cloud software provider raising its full-year guidance as it continues to expand its AI capabilities and development cloud offerings. Subscription services revenue, which forms the core of Veeva’s business model, grew 17% YoY to $682.5 million. Professional services and other revenues increased 13% year over year to $128.7 million. The company reported significant progress in its product offerings during the quarter, with Veeva Vault CRM adding 23 new customers to reach 115 customers live. Veeva’s Development Cloud also gained traction with three top 20 biopharmas selecting Veeva applications as their enterprise standard. Non-GAAP operating income for the third quarter was $364.9 million, compared to $304.0 million one year ago, an increase of 20% year over year. Non-GAAP net income for the third quarter was $345.1 million, compared to $288.3 million one year ago, an increase of 20% year over year.
Meanwhile, Veeva AI is progressing rapidly with a focused strategy to deliver deep, industry-specific AI agents that will fundamentally transform productivity and execution for the life sciences industry. The first agents for CRM and commercial content are on track for release in early December, with R&D, quality, and additional commercial agents planned for 2026. Veeva made significant progress advancing Veeva Development Cloud, its largest go-forward opportunity in life sciences. Three top 20 biopharmas selected Veeva Development Cloud applications as their enterprise standard in the quarter, including one each for Veeva Study Startup, Veeva Study Training, and Veeva Safety. In safety, the newest area in Development Cloud, the third top 20 biopharma went live in the quarter and Veeva advanced a number of key opportunities as the industry looks to Veeva to help modernize pharmacovigilance.
VEEV in the third quarter of FY26 has reported the adjusted earnings per share of $2.04, beating the analysts’ estimates for the adjusted earnings per share of $1.95. The company had reported the adjusted revenue growth of 16 percent to $811.2 million in the third quarter of FY26, beating the analysts’ estimates for revenue of $792.75 million.
The company raised its full-year fiscal 2026 guidance, now expecting revenue between $3.166-3.169 billion, above the consensus estimate of $3.14 billion. Veeva also increased its adjusted EPS forecast to $7.93, higher than analysts’ expectations of $7.81.
For the fourth quarter, Veeva projects revenue between $807-810 million and adjusted EPS of approximately $1.92.